The BetterWorks Library

Performance Management Trends for 2016

The world of performance management is drastically changing from what it was just a decade ago. Following leaders such as General Electric and Adobe, more companies are choosing to focus on company goals rather than employee metrics. The older, data-based methods of evaluation have proven themselves ineffective. Instead, business leaders will employ several different ideas in 2016. While some companies have already adopted many of these current management trends, we expect them to become even more widespread as the negative effects of traditional performance management continue to come to light.

Performance Ratings Will Continue to Disappear

Placing employees on a number scale just doesn’t work. It breeds competition and leads to a less productive workforce overall. Instead, more businesses will evaluate their staff by how successful each member is at working toward company goals. In a similar vein, business leaders should resist the temptation to make management decisions based on people analytics, CIO.com said. While this data can provide insight into skill levels, it doesn’t mean much in the way of engagement. Instead, business leaders should focus on increasing employee satisfaction to deliver better long-term results.

Conversations Will Replace Annual Reviews

Many organizations have already realized yearly assessments are an inefficient way of measuring employees. Business.com expects even more to come around in 2016. Annual reviews mean an employee has about one hour of discussion to see how they’re doing, then approximately 364 days to forget everything he or she discussed with management. Frequent conversations, on the other hand, keep any issues discussed at the forefront of your mind and that of your employees. It also allows you to identify any future issues ahead of time and keeps you constantly aware of your staff members’ needs, workload and abilities.

Professional Development Will Rise to the Forefront of Engagement

Millennials, that nuanced generation that seems to elude so many employers, place a heavy emphasis on leadership development, according to a recent survey. In fact, 63 percent of workers aged 34 and below from all over the world complain they aren’t being properly trained for commanding positions at work. As a result, these younger staff members are more likely to frequently change jobs, searching for an employer who cares for their professional development.

Indeed, CIO.com expects employee growth opportunities will have a direct correlation to turnover rates. Based on the survey, we can assume a company dedicated to educating and advancing its employees will see less of its workforce leaving the building.

Employers Will Focus on Gender Bias

In 2015, several Hollywood actresses brought gender discrepancy to the forefront when they pointed out women were often paid less than their male co-stars, even if the woman’s role was more important to the movie in question. Such bias is echoed throughout the business world and doesn’t stop at pay rates – it continues through the employee chain all the way to feedback.

According to Fortune, women in the tech sector receive an overwhelming amount of critical feedback compared to their male counterparts during performance reviews. In fact, only 13 percent of women surveyed had a review free of criticisms compared to 58 percent of men. What’s more, 71 percent of women were given negative feedback while only 2 percent of men got the same. Business analysts – and, most importantly, female workers – aren’t ignoring these inconsistencies. Business.com expects more managers will focus on providing fair, unbiased comments when evaluating employee performance.

As more companies take on these ideas in 2016, employee satisfaction will rise, and businesses will see less turnover. It’s our hope that every organization will understand the benefits of revised performance management methods and work towards better practices.